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The Cloud Value Framework enables organisations to build a comprehensive business case for cloud computing by measuring and tracking progress against four key dimensions of value.
AWS Cloud Economics developed the Cloud Value Framework by working with more than 100 enterprise AWS customers and analysing over 1,000 public AWS case studies.
The Cloud Value Framework highlights four main areas in which AWS customers are realising business value through their adoption of cloud computing:
Cost Savings
Staff Productivity
Operational Resilience
Business Agility
This whitepaper provides an overview of how the cloud is transforming business and an analysis of the four aspects of the Cloud Value Framework listed above.
Understanding Cloud Computing
To understand the transformative power of cloud computing, consider how the power-grid revolution modernised manufacturing.
Before the development of widespread electrical utilities, companies had to buy and run their own generators for electrical power to operate their machines. This required significant capital expenditure (CapEx) upfront, as well as ongoing repair, maintenance and replacement costs.
Perhaps most importantly, it made companies less resilient, agile, and productive. Eventually, utilities began producing electricity centrally and selling it to businesses through the power grid.
Not only could businesses reduce costs and CapEx using utility-provided power, but they could also focus their energy and investment on improving product quality, developing better manufacturing processes, and better serving their customers.
Fast-forward to the computing revolution of the 20th century
In the beginning, companies typically purchased, deployed and managed their own computing resources. As with a power generator, building a data centre required large, upfront CapEx, a lengthy procurement cycle and the expertise and staff to run it all.
Just as the power grid enabled companies to get electricity from a centralised utility, today the internet provides a way to access centralised computing resources such as AWS.
This allows companies to avoid large, upfront hardware investments and pay only for what they use, as with an electric utility.
In addition to reducing costs, these companies also were able to focus their employees on differentiating and value-added work, improve the reliability and security of their electricity, and be more agile and responsive to their customers.
The Cloud Value Framework highlights four main areas in which AWS customers are realising business value through their adoption of cloud computing:
Cost Savings
Staff Productivity
Operational Resilience
Business Agility
This whitepaper provides an overview of how the cloud is transforming business and an analysis of the four aspects of the Cloud Value Framework listed above.
UNDERSTANDING CLOUD COMPUTING
To understand the transformative power of cloud computing, consider how the power-grid revolution modernised manufacturing.
Before the development of widespread electrical utilities, companies had to buy and run their own generators for electrical power to operate their machines. This required significant capital expenditure (CapEx) upfront, as well as ongoing repair, maintenance and replacement costs.
Perhaps most importantly, it made companies less resilient, agile, and productive. Eventually, utilities began producing electricity centrally and selling it to businesses through the power grid.
Not only could businesses reduce costs and CapEx using utility-provided power, but they could also focus their energy and investment on improving product quality, developing better manufacturing processes, and better serving their customers.
FAST-FORWARD TO THE COMPUTING REVOLUTION OF THE 20TH CENTURY
In the beginning, companies typically purchased, deployed and managed their own computing resources. As with a power generator, building a data centre required large, upfront CapEx, a lengthy procurement cycle and the expertise and staff to run it all.
Just as the power grid enabled companies to get electricity from a centralised utility, today the internet provides a way to access centralised computing resources such as Amazon Web Services (AWS).
This allows companies to avoid large, upfront hardware investments and pay only for what they use, as with an electric utility.
In addition to reducing costs, these companies also were able to focus their employees on differentiating and value-added work, improve the reliability and security of their electricity, and be more agile and responsive to their customers.
ADDITIONAL DIMENSIONS OF CLOUD VALUE
Enhanced Scalability
One of the noteworthy aspects of cloud computing, especially through Amazon Web Services (AWS), is the seamless scalability it offers. Organisations can dynamically adjust their computing resources based on demand, ensuring optimal performance during peak periods while avoiding unnecessary costs during lulls in activity.
Resource Efficiency
AWS Cloud provides tools and services that enhance resource efficiency, allowing organisations to optimise their usage of computing resources. Through features like auto-scaling and serverless computing, businesses can ensure optimal resource allocation, further contributing to cost savings and operational efficiency.
Global Reach and Accessibility
Cloud computing, facilitated by AWS's global infrastructure, enables businesses to extend their reach globally without the need for extensive physical infrastructure investments. This global accessibility not only supports international expansion but also enhances operational resilience by diversifying the geographical locations of critical resources.
Innovation Acceleration
The cloud empowers organisations to accelerate innovation by providing a platform for experimentation and rapid development. With access to a vast array of AWS cloud services and AWS resources, businesses can experiment with new ideas, iterate quickly, and bring innovative solutions to the market faster than traditional infrastructure models would allow.
Security and Compliance
The Cloud platform comes equipped with robust security measures and compliance certifications. By leveraging these features, organisations can enhance their operational resilience and instil confidence in customers and stakeholders regarding the security and compliance of their cloud-based operations, such as their data centers and data backup.
DEVELOPING CLOUD COMPETENCY
In the face of these transformative opportunities, it is crucial for organisations to equip their teams with cloud computing skill sets. As innovations continue to shape organisational and community landscapes, having proficient cloud practitioners becomes more crucial, especially when it comes to the AWS platform, AWS storage, and AWS servers.
AWS offers a range of Cloud Training Solutions to empower teams with the necessary skills for effective business transformation. These training programs cover various aspects of AWS services, AWS infrastructure, developer tools, and database services as well as cloud skills, ensuring that organisations can make the most of the cloud's potential. Additionally, the white paper on the value of AWS training and certification options serves as a valuable resource for those seeking to navigate and leverage the educational offerings provided by AWS.
EXPANDING ON AWS CLOUD SERVICES
While the Cloud Value Framework highlights overarching dimensions of value, it's essential to delve into the specific AWS services that contribute to these benefits. AWS offers a comprehensive suite of cloud services, each designed to address specific business needs and challenges.
1. Amazon EC2 (Elastic Compute Cloud): Amazon EC2 is a fundamental AWS service providing scalable compute capacity in the cloud. This allows organisations to quickly scale their computing resources based on demand, contributing to enhanced scalability and cost savings. By leveraging EC2 instances, businesses can run applications and workloads without the need to invest in physical hardware.
2. Amazon S3 (Simple Storage Service): Amazon S3 is a widely used object storage service that facilitates storing data and retrieval. This service plays a pivotal role in resource efficiency by enabling organisations to optimally manage and store vast amounts of data. Its scalability ensures that businesses can efficiently handle growing volumes of data without compromising performance.
3. AWS Lambda: AWS Lambda is a serverless computing service that enables organisations to run code without provisioning or managing servers. This serverless model enhances resource efficiency by allowing businesses to execute functions in response to events, eliminating the need to maintain and scale dedicated server infrastructure.
4. Amazon RDS (Relational Database Service): For organisations requiring a reliable and scalable relational database, Amazon RDS provides a fully managed solution. This service contributes to both resource efficiency and operational resilience by automating routine database tasks, allowing teams to focus on strategic initiatives rather than database maintenance.
5. Amazon CloudFront: Amazon CloudFront is a content delivery network (CDN) service that ensures low-latency and high-performance delivery of content to end-users. Its global reach and accessibility contribute to improved user experiences worldwide. Organisations can leverage CloudFront to enhance their operational resilience by distributing content through a network of edge locations, reducing latency and improving availability.
6. AWS IoT (Internet of Things): In the era of connected devices, AWS IoT provides a suite of services for securely connecting and managing IoT devices in an AWS environment. This not only contributes to innovation acceleration by enabling businesses to build and deploy IoT applications but also enhances security and compliance by offering robust authentication and access control mechanisms. A robust cloud infrastructure enables users to remain confident with their operating systems and big data management.
Witness the Full Potential of AWS Cloud
AWS Cloud Value Framework serves as a guide for organisations looking to unlock the full potential of cloud computing. By understanding and leveraging the dimensions of value outlined in this framework, businesses can not only realise immediate benefits such as cost savings but also foster long-term growth through strategic adoption of AWS cloud services.
The expansion of AWS services showcases the diverse tools and resources available, further emphasising the depth of value that can be attained through thoughtful implementation of cloud solutions. As the business landscape continues to evolve, embracing the AWS Cloud becomes not just a technological choice but a strategic imperative for organisations aiming to thrive in the digital era.
It's important to equip your team with cloud computing skill sets as they work on innovations that impact your organisation and your community. Check out some of our AWS Cloud Training Solutions to help you accelerate your business transformation. You can also access our white paper on the value of AWS training and certification options.
